How a Financial Planner______________________

Can Help You____________

. . . and How to ___________

Choose the__________

Right One_________

Making your financial dreams

come true.

Like most people, you have hopes and dreamsand life goals for yourself and your family.These might include buying a home or bus-iness…saving for college education for your children…taking a dream vacation…reducingtaxes…retiring comfortably. Financial planningis the process of wisely managing your financesso that you can achieve your dreams andgoals—while at the same time helping younegotiate the financial barriers that inevitablyarise in every stage of life.

Managing your personal finances is ultimatelyyour responsibility. However, you don’t haveto do it alone. A qualified financial planner,such as a CERTIFIED FINANCIAL PLANNER™

professional, can help you make decisionsthat make the most of your financial resources.

Financial planning can help you.

• Set realistic financial and personal goals

• Assess your current financial health byexamining your assets, liabilities, income,insurance, taxes, investments and estate plan

• Develop a realistic, comprehensive plan tomeet your financial goals by addressingfinancial weaknesses and building onfinancial strengths

• Put your plan into action and monitor itsprogress

• Stay on track to meet changing goals…

changing personal circumstances…changing

stages of your life…changing products,

markets and tax laws

The Financial Planning Association® (FPA®)connects those who need, support, anddeliver financial planning. We believe thateveryone is entitled to objective advice froma competent, ethical financial planner tomake smart financial decisions. FPAmembers demonstrate and support aprofessional commitment to education anda client-centered financial planning process.

To locate a CFP® professional in your areavisit www.plannersearch.org.

Aren’t all financial planners

the same?

No! Be wary of people who call themselves financial planners but who appear moreinterested in pushing specific financialproducts at the expense of your real needs andgoals. A genuine financial planner can help youaddress a variety of financial needs, not justinvestments, insurance, or taxes. Moreover, notevery financial planner is a CERTIFIED FINANCIALPLANNER professional. CFP professionals havean ethical obligation to act in your interest.

Aren’t financial planners

regulated?

People who call themselves financial planners may not currently be regulated asf inancial planners by either state or federalgovernment. Many financial planners areregulated by states through subsets of f inancialplanning, such as insurance and taxes, but notfor their overall financial planning activities.

The Securities and Exchange Commission (SEC) and most states have requirements forpeople who give investment advice, whichwould include many financial planners. FPAencourages you to ask whether the planner you are considering is a registered investmentadviser or is an agent of a company thatis registered.

CFP practitioners are certif ied and regulatedby the Certified Financial Planner Board ofStandards, Inc. (CFP Board). By virtue of theircertification, granted by CFP Board, CFPprofessionals are held accountable to CFPBoard’s code of ethics for their f inancialplanning activities.

Do you need the services

of a financial planner?

How do you know if you could benefit from the services of a financial planner? You maynot have the expertise, the time or the desire to actively plan and manage certain financialaspects of your life. You may want help getting started. You may benefit from anobjective, third-party perspective on what are often emotional, difficult decisions. And in today’s hectic world, it can be beneficial to have a financial planning expert help tomake sure you stay focused and follow through with your financial plans.

Events that might prompt you to

seek the services of a planner

Often a specific event or need will trigger the desire for professional financial planning guidance. These might include:

• Making sure your money will last duringretirement or rolling over a retirement plan

• Handling the inheritance of a large sum ofmoney or other unexpected financial windfall

• Preparing for a marriage or divorce

• Planning for the birth or adoption of a child

• Facing a financial crisis such as a seriousillness, layoff or natural disaster

• Caring for aging parents or a disabled child

• Coping financially with the death of a spouse or close family member

• Funding education

• Buying, selling or passing on a family business

As a result of its established recognition and credibility as a symbol of educationalcompetence and continued commitment tofinancial planning excellence, FPA recommendsthe use of a CERTIFIED FINANCIAL PLANNERprofessional for your financial planning needs.

How should I start looking

for a planner?

Ask for names from friends or businessassociates who may have used a f inancialplanner. Attorneys, accountants, insuranceagents, bankers and other f inancial specialistsalso can be good sources because plannersoften work with them to carry out a client’s plan.

FPA can provide a list of CFP professionals inyour area. Go to www.plannersearch.org or call our toll-free hotline at 800.647.6340.

Check with the SEC, appropriate state agencies,your local Better Business Bureau and the CFP Board at 888.CFP.MARK (237.6275) todetermine if complaints have been f iled againstthe planner you are considering.

How do I choose the right

financial planner for me?

Choosing a f inancial planner is as important aschoosing a doctor or lawyer. Working with afinancial planner is a very personal relationship.In addition to competency, a financial plannershould have integrity, trust and a commitment toethical behavior and high professional standards.You want a planner who will put your needs andinterests first.

Why a CFP professional?

CFP professionals are dedicated to using thefinancial planning process to serve the financialneeds of individuals, families and businesses.Most CFP professionals have earned a four-yearcollege degree in finance-related areas, andhave completed a course of study in financialplanning approved by the CFP Board.

To earn the prestigious CFP certification andremain certified as a CFP professional, individualsmust meet four main requirements.

Examination—They must successfullycomplete the CFP Board’s comprehensivecertification examination, which tests theindividual’s knowledge on various key aspects offinancial planning.

Experience —They must acquire three yearsof financial planning-related experience beforereceiving the right to use the CFP marks.

Ethics—They must voluntarily ascribe to theCFP Board’s code of ethics and additionalrequirements as mandated. CFP practitioners whoviolate the code can be disciplined, including thepermanent loss of the right to use the CFP marks.

Education—They must complete 30 hoursof continuing education every two years to staycurrent in financial planning knowledge,including ethics.

Compliance with these four all-important areasassures you that an individual who holds theCFP certification is well prepared and qualifiedto give you sound, professional advice.

• How the planner prepares a plan

• How the planner might address yourparticular needs

• Whether the planner or others will implementrecommendations from the plan

• Business relationships the planner has thatmight present a conflict of interest

• How the planner is paid for services, and thetypical charges

A face-to-face interview also should give you apersonal sense about the planner. Does the personseem forthright in their answers? Do you have asense of trust and rapport? Is the person focusedon your needs, not selling products?

Why is ‘full disclosure’ vital

as I pick a planner?

At the heart of any working relationship witha financial planner is trust. Trust is built on two factors: the planner acting in your bestinterests, and full disclosure of the planner’sbackground, business practices and other issues.

Full disclosure means the planner is forthrightin providing answers about the planner’s workexperience, compensation, methods ofplanning and so on.

For example, what business relationships doesthe planner have? These might be relationshipswith companies whose products the plannersells, or referral fees the planner earns byreferring you to certain professionals.

Also, many planners specialize in working with certain types of clients, such as small-business owners, executives or retirees. Manyhave minimum income and asset requirements.Some specialize in certain areas of planningsuch as retirement, divorce or asset management.This is why we recommend that you interviewat least three planners in person to find theright one to serve your needs.

What information should I ask for?

First, request a written disclosure documentfrom the planner. This will either be what’scalled a Form ADV or an equivalent brochure.This should answer many of your questions.You may then want to follow up with a personalinterview, which many planners will do for free.

Some of the basic information

you want to gather

• What financial planning and other financialdesignations the planner holds

• Educational background and work experience

• Licenses to sell certain financial products,such as life insurance or securities

• Services the planner provides

• The planner’s basic approach to financial planning

• Areas of specialization

• Types of clients the planner serves, and anyminimum net worth or income requirements

• Professional affiliations, including membershipin the Financial Planning Association

from the sale of financial products you agree to purchase in order to implement financialplanning recommendations.

Combination Fee/Commission: A fee is charged for consultation, advice and financialplan preparation on an hourly, project or percentagebasis. In addition, the planner may receivecommissions from the sale of recommendedproducts used to implement your plan.

Fee-offset: Commissions from the sale of financial products are offset against feescharged for the planning process.

Salary: Some planners work on a salary and bonus basis for financial services firms.

In all of the above categories of compensation,you should request information on any real orpotential conflicts of interest. In addition tocommissions received from any financial productsales, you should ask whether there are outsideincentives or bonuses to be gained by theplanner for certain recommendations.

How can I contact a

CFP professional?

To find a CFP professional in your area, call FPAat 800.647.6340 or visit www.plannersearch.org.

© 2006 The Financial Planning Association

The Financial Planning Association is the owner of trademark,[and registration], service mark and collective membership markrights in, and various U.S. registrations/applications for: FPA,

, and FINANCIAL PLANNING ASSOCIATION. The marksmay not be used without written permission from the FinancialPlanning Association.

CFP,® CERTIFIED FINANCIAL PLANNER,™ and arecertification marks owned by Certified Financial Planner Boardof Standards, Inc. These marks are awarded to individuals whosuccessfully complete CFP Board’s initial and ongoingcertification requirements.

The financial planner also should disclose anydisciplinary actions that may have been takenagainst the planner by various governmentregulatory agencies and professional associations.CFP Board (888.CFP.MARK) can confirmwhether disciplinary action has been takenagainst a particular CFP professional. If you do not receive full disclosure from a financialplanner, that is a sign you should take yourfinancial planning needs elsewhere.

How do financial planners charge?

Financial planners can be paid in a variety of ways for their work, which are listed below.Some are paid by more than one method.Each method has its merits. Choosing theappropriate method depends on your individualsituation. FPA believes that the planner’scompetence and ethical standards should bethe primary consideration in your selectionprocess. However, before entering into arelationship with a planner, you should havea clear understanding of how he or she willbe compensated. A particular compensationarrangement may best suit your needs.

Methods of compensation

There are several commonly accepted methods:

Fee-only: The planner is compensatedentirely from fees for purposes of consultation,plan development or investment management.These fees may be charged on an hourly orproject basis depending on your needs, or on a percentage of assets under management.

Commission-only: There is no charge for the planner’s advice or preparation of afinancial plan. Compensation is received solely

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